What is agreed value on a Georgia collector policy?

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Quick answer: Agreed value is a figure you and the insurer set when the policy starts. If the car is a total loss, that full amount is paid with no depreciation deducted. A standard auto policy instead pays actual cash value, which subtracts depreciation and is usually far lower on an appreciating classic.

Agreed value on a Georgia collector policy is a dollar figure that the owner and the insurer set together when the policy is written. If the car is later declared a total loss, the policy pays that full agreed amount, with no deduction for depreciation.

This is different from how a standard auto policy handles a total loss. A standard policy pays actual cash value (ACV), which means the payout is reduced for the age, mileage, and wear the vehicle had before the loss. For more detail on how that calculation works, the actual cash value glossary entry breaks down the depreciation math on a standard claim.

The distinction matters most for cars that gain value over time instead of losing it. A 1965 Mustang appraised and agreed at $45,000 when the policy is written is paid at $45,000 if it is totaled a year later, even if the market value of similar cars has moved since then. A standard ACV policy on the same car would instead calculate a depreciated value based on mileage and condition, which on an appreciating classic often lands well below what the car would actually cost to replace.

Agreed value coverage is typically set through an appraisal or documented valuation at the start of the policy, and it is one piece of a broader collector policy. The liability portion of the policy is separate and still has to meet Georgia's 25/50/25 minimum regardless of how the agreed value is set. Insurers that offer agreed value coverage also tend to attach conditions to it, including restrictions on how and how much the car is driven and requirements for secure storage when the car is parked.

Agreed value coverage is not available for every vehicle from a given carrier, and eligibility varies by insurer. American Modern and Progressive write collector policies in Georgia and are available through Olive Cover. A licensed advisor can confirm what appraisal documentation a given carrier needs to set an agreed value figure during a free coverage review, and the carriers page has more on how Olive Cover works across multiple insurers.